The Carlyle Group (NASDAQ:CG) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research cut shares of The Carlyle Group (NASDAQ:CG) from a buy rating to a hold rating in a report released on Tuesday, Zacks.com reports. The firm currently has $54.00 price target on the financial services provider’s stock.

According to Zacks, “Shares of Carlyle have outperformed the industry in the past year. The company has an impressive earnings surprise history, having beaten the Zacks Consensus Estimate in all the trailing four quarters. Increasing assets under management (AUM) balance and fund management fees will support its organic growth. Efforts to expand operations by entering business avenues such as insurance and capital markets might drive top-line growth. Also, Carlyle aims to generate at least $450 million in net realized performance revenues over the next two quarters from already-announced sales. Given the strong liquidity position, the company is less exposed to credit risk in any economic downturn. However, a persistent rise in costs might deter bottom-line growth to an extent. Its capital deployment activities seem unsustainable, given a high debt/equity ratio.”

Several other analysts have also recently weighed in on the stock. TheStreet raised shares of The Carlyle Group from a c+ rating to a b+ rating in a research note on Wednesday, October 13th. Bank of America started coverage on shares of The Carlyle Group in a research report on Thursday, December 16th. They set a buy rating and a $79.00 price objective for the company. Deutsche Bank Aktiengesellschaft increased their price objective on shares of The Carlyle Group from $63.00 to $70.00 and gave the stock a buy rating in a research report on Friday, October 29th. Oppenheimer increased their price objective on shares of The Carlyle Group from $69.00 to $77.00 and gave the stock an outperform rating in a research report on Friday, October 29th. Finally, Morgan Stanley increased their price objective on shares of The Carlyle Group from $53.00 to $57.00 and gave the stock an equal weight rating in a research report on Friday, October 15th. Four investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. Based on data from MarketBeat, The Carlyle Group currently has a consensus rating of Buy and a consensus target price of $51.27.

The Carlyle Group stock opened at $51.19 on Tuesday. The firm has a 50 day simple moving average of $54.93 and a 200-day simple moving average of $51.24. The Carlyle Group has a 1-year low of $31.18 and a 1-year high of $60.62. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.50 and a quick ratio of 2.50. The stock has a market cap of $18.25 billion, a price-to-earnings ratio of 6.51, a price-to-earnings-growth ratio of 0.51 and a beta of 1.41.

The Carlyle Group (NASDAQ:CG) last posted its quarterly earnings results on Thursday, October 28th. The financial services provider reported $1.54 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.50. The Carlyle Group had a net margin of 38.39% and a return on equity of 36.86%. The business had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.04 billion. During the same quarter in the prior year, the company posted $0.40 EPS. Equities analysts expect that The Carlyle Group will post 4.12 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Wednesday, November 17th. Shareholders of record on Tuesday, November 9th were given a $0.25 dividend. The ex-dividend date was Monday, November 8th. This represents a $1.00 annualized dividend and a yield of 1.95%. The Carlyle Group’s dividend payout ratio is presently 12.72%.

In other news, major shareholder Carlyle Group Inc. sold 236,565 shares of the firm’s stock in a transaction on Tuesday, October 26th. The shares were sold at an average price of $69.63, for a total value of $16,472,020.95. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Thomas S. Robertson sold 30,000 shares of the firm’s stock in a transaction on Wednesday, November 3rd. The shares were sold at an average price of $56.68, for a total transaction of $1,700,400.00. The disclosure for this sale can be found here. Insiders sold a total of 3,766,565 shares of company stock valued at $221,247,421 in the last three months. 36.30% of the stock is currently owned by corporate insiders.

A number of large investors have recently made changes to their positions in the stock. Spire Wealth Management raised its stake in The Carlyle Group by 49.2% during the 4th quarter. Spire Wealth Management now owns 4,567 shares of the financial services provider’s stock worth $251,000 after acquiring an additional 1,506 shares in the last quarter. State of Alaska Department of Revenue acquired a new position in The Carlyle Group in the fourth quarter valued at $1,339,000. Stonnington Group LLC increased its stake in The Carlyle Group by 346.5% in the fourth quarter. Stonnington Group LLC now owns 119,000 shares of the financial services provider’s stock valued at $6,209,000 after purchasing an additional 92,350 shares during the period. Capital Investment Advisors LLC acquired a new position in The Carlyle Group in the fourth quarter valued at $225,000. Finally, Hudson Bay Capital Management LP acquired a new position in The Carlyle Group in the third quarter valued at $16,075,000. Hedge funds and other institutional investors own 91.06% of the company’s stock.

The Carlyle Group Company Profile

The Carlyle Group, Inc engages in a multi-product global alternative asset management. It operates though the following segments: Corporate Private Equity, Real Assets, Global Credit, and Investment Solutions. The Corporate Private Equity segment focuses on buyout, and growth capital funds, which pursue a variety of corporate investments of different sizes and growth potentials.

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Analyst Recommendations for The Carlyle Group (NASDAQ:CG)

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